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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (8938)	11/13/1999 10:32:00 PM
From: Madharry	Read Replies (1) \| Respond to of 78627

I am curious about your last statement " it is return on total equity that counts" surely its not only return but risk that counts, presumably one is willing to accept a lower return on the purchase price if it is backed by a large book value of marketable securities. My concern is what taxes are payable upon disposition of the nice portfolio of marketable securities, because to my knowledge there is no way to distribute that portfolio without paying taxes on it. Somewhere I read that corporations do not pay long term capital gains the way individuals do. so presumably one has to discount the value of the portfolio by about 30% for taxes. Then the question becomes what will unlock the value for shareholders. Is there any likelihood that the company will be sold in the near future or grow through acquistions?